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AMENDMENT NO.llll Purpose: In the nature of a substitute.

Calendar No.lll

IN THE SENATE OF THE UNITED STATES—112th Cong., 2d Sess.

H. R. 8 To extend certain tax relief provisions enacted in 2001 and 2003, and to provide for expedited consideration of a bill providing for comprehensive tax reform, and for other purposes. Referred to the Committee on llllllllll and ordered to be printed Ordered to lie on the table and to be printed AMENDMENT IN THE NATURE OF A SUBSTITUTE intended to be proposed by Mr. REID (for himself and Mr. MCCONNELL) Viz: 1 Strike all after the enacting clause and insert the fol-

2 lowing: 3 4
SECTION 1. SHORT TITLE, ETC.

(a) SHORT TITLE.—This Act may be cited as the

5 ‘‘American Taxpayer Relief Act of 2012’’. 6 (b) AMENDMENT
OF

1986 CODE.—Except as other-

7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 9 to, or repeal of, a section or other provision, the reference

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2 1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 3 (c) TABLE
OF

by this subsection shall apply to taxable, plan, or limitation years beginning after December 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after December 31, 2012. (b) APPLICATION
OF

and (e) shall be applied— ‘‘(A) by substituting ‘25%’ for ‘28%’ each place it appears (before the application of subparagraph (B)), ‘‘(B) by substituting ‘28%’ for ‘31%’ each place it appears, and ‘‘(C) by substituting ‘33%’ for ‘36%’ each place it appears.’’. (B) 35-PERCENT
RATE BRACKET.—Sub-

section (i) of section 1 is amended by redesignating paragraph (3) as paragraph (4) and by

inserting after paragraph (2) the following new paragraph: ‘‘(3) MODIFICATIONS
TO INCOME TAX BRACK-

ETS FOR HIGH-INCOME TAXPAYERS.—

‘‘(A) 35-PERCENT

RATE BRACKET.—In

the

case of taxable years beginning after December 31, 2012— ‘‘(i) the rate of tax under subsections (a), (b), (c), and (d) on a taxpayer’s taxable income in the highest rate bracket shall be 35 percent to the extent such income does not exceed an amount equal to the excess of— ‘‘(I) the applicable threshold,

poses of this paragraph, with respect to taxable years beginning in calendar years after 2013, each of the dollar amounts under clauses (i), (ii), and (iii) of subparagraph (B) shall be adjusted in the same manner as under paragraph (1)(C)(i), except that subsection (f)(3)(B) shall be applied by substituting ‘2012’ for ‘1992’.’’. (2) PHASEOUT
OF PERSONAL EXEMPTIONS AND

tion, the term ‘applicable amount’ means— ‘‘(A) $300,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)), ‘‘(B) $275,000 in the case of a head of household (as defined in section 2(b)), ‘‘(C) $250,000 in the case of an individual who is not married and who is not a surviving spouse or head of household, and ‘‘(D) 1⁄2 the amount applicable under subparagraph (A) (after adjustment, if any, under paragraph (2)) in the case of a married individual filing a separate return. For purposes of this paragraph, marital status shall be determined under section 7703. ‘‘(2) INFLATION
ADJUSTMENT.—In

the case of

any taxable year beginning in calendar years after 2013, each of the dollar amounts under subparagraphs (A), (B), and (C) of paragraph (1) shall be shall be increased by an amount equal to— ‘‘(A) such dollar amount, multiplied by ‘‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, except

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10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that section 1(f)(3)(B) shall be applied by substituting ‘2012’ for ‘1992’. If any amount after adjustment under the preceding sentence is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.’’, and (ii) by striking subsections (f) and (g). (B) PHASEOUT
OF DEDUCTIONS FOR PER-

section 2001, as amended by section 302(a)(2) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is amended by striking ‘‘Over $500,000’’ and all that follows and inserting the following:
‘‘Over $500,000 but not over $750,000 Over $750,000 but not over $1,000,000. Over $1,000,000 .................................. $155,800, plus 37 percent of the excess of such amount over $500,000. $248,300, plus 39 percent of the excess of such amount over $750,000. $345,800, plus 40 percent of the excess of such amount over $1,000,000.’’.

provided by in this paragraph, the amendments made by this subsection shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2012. (B) TECHNICAL
CORRECTION.—The

amendment made by paragraph (2) shall take effect as if included in the amendments made by section 303 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX RELIEF.

1(h) is amended by striking subparagraph (C), by redesignating subparagraphs (D) and (E) as sub-

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13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 paragraphs (E) and (F) and by inserting after subparagraph (B) the following new subparagraphs: ‘‘(C) 15 percent of the lesser of— ‘‘(i) so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the amount on which a tax is determined under subparagraph (B), or ‘‘(ii) the excess of— ‘‘(I) the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 39.6 percent, over ‘‘(II) the sum of the amounts on which a tax is determined under subparagraphs (A) and (B), ‘‘(D) 20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C),’’. (2) MINIMUM
TAX.—Paragraph

(3) of section

55(b) is amended by striking subparagraph (C), by redesignating subparagraph (D) as subparagraph (E), and by inserting after subparagraph (B) the following new subparagraphs: ‘‘(C) 15 percent of the lesser of—

7518(g)(6)(A). (E) Section 53511(f)(2) of title 46, United States Code. (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by striking ‘‘5 percent (0 percent in the case of taxable years beginning after 2007)’’ and inserting ‘‘0 percent’’.

vided, the amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2012. (2) WITHHOLDING.—The amendments made by paragraphs (1)(C) and (3) of subsection (c) shall apply to amounts paid on or after January 1, 2013.
SEC. 103. EXTENSION OF 2009 TAX RELIEF.

(a) 5-YEAR EXTENSION

OF

AMERICAN OPPORTUNITY

15 TAX CREDIT.— 16 17 18 19 20 21 22 23 24 (1) IN
GENERAL.—Section

25A(i) is amended

by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting ‘‘after 2008 and before 2018’’. (2) TREATMENT
OF POSSESSIONS.—Section

1004(c)(1) of division B of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking ‘‘in 2009, 2010, 2011, and 2012’’ each place it appears and inserting ‘‘after 2008 and before 2018’’.

23 fund (or advance payment with respect to a refundable 24 credit) made to any individual under this title shall not 25 be taken into account as income, and shall not be taken

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17 1 into account as resources for a period of 12 months from 2 receipt, for purposes of determining the eligibility of such 3 individual (or any other individual) for benefits or assist4 ance (or the amount or extent of benefits or assistance) 5 under any Federal program or under any State or local 6 program financed in whole or in part with Federal 7 funds.’’. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (e) EFFECTIVE DATES.— (1) IN
GENERAL.—Except

as provided in para-

graph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2012. (2) RULE
FUNDS.—The REGARDING DISREGARD OF RE-

is amended by adding at the end the following new paragraph: ‘‘(4) INFLATION ‘‘(A) IN
ADJUSTMENT.—

GENERAL.—In

the case of any

taxable year beginning in a calendar year after 2012, the amounts described in subparagraph (B) shall each be increased by an amount equal to— ‘‘(i) such dollar amount, multiplied by ‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2011’ for ‘calendar year 1992’ in subparagraph (B) thereof.

amounts described in this subparagraph are— ‘‘(i) each of the dollar amounts contained in subsection (b)(1)(A)(i), ‘‘(ii) each of the dollar amounts contained in paragraph (1), and ‘‘(iii) each of the dollar amounts in subparagraphs (A) and (B) of paragraph (3). ‘‘(C) ROUNDING.—Any increase deter-

mined under subparagraph (A) shall be rounded to the nearest multiple of $100.’’. (2) CONFORMING
AMENDMENTS.—

(A) Clause (iii) of section 55(b)(1)(A) is amended by striking ‘‘by substituting’’ and all that follows through ‘‘appears.’’ and inserting ‘‘by substituting 50 percent of the dollar amount otherwise applicable under subclause (I) and subclause (II) thereof.’’. (B) Paragraph (3) of section 55(d) is amended— (i) by striking ‘‘or (2)’’ in subparagraph (A), (ii) by striking ‘‘and’’ at the end of subparagraph (B), and

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20 1 2 3 4 5 6 7 8 9 10 11 12 13 (iii) by striking subparagraph (C) and inserting the following new subparagraphs: ‘‘(C) 50 percent of the dollar amount applicable under subparagraph (A) in the case of a taxpayer described in subparagraph (C) or (D) of paragraph (1), and ‘‘(D) $150,000 in the case of a taxpayer described in paragraph (2).’’. (c) ALTERNATIVE MINIMUM TAX RELIEF
REFUNDABLE FOR

NON-

CREDITS.—
GENERAL.—Subsection

(1) IN

(a) of section 26

is amended to read as follows: ‘‘(a) LIMITATION BASED
ON

AMOUNT

OF

TAX.—The

14 aggregate amount of credits allowed by this subpart for 15 the taxable year shall not exceed the sum of— 16 17 18 19 20 21 22 23 24 ‘‘(1) the taxpayer’s regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27(a), and ‘‘(2) the tax imposed by section 55(a) for the taxable year.’’. (2) CONFORMING
AMENDMENTS.— CREDIT.—

under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 25D and 1400C), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.’’. (iii) Section 23(c) is amended by redesignating paragraph (3) as paragraph (2). (B) CHILD
TAX CREDIT.—

(i) Section 24(b) is amended by striking paragraph (3). (ii) Section 24(d)(1) is amended— (I) by striking ‘‘section 26(a)(2) or subsection (b)(3), as the case may be,’’ each place it appears in subparagraphs (A) and (B) and inserting ‘‘section 26(a)’’, and

poses of this paragraph, the term ‘applicable tax limit’ means the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 25D, and 1400C).’’. (D) HOPE
AND LIFETIME LEARNING

CREDITS.—Section

25A(i) is amended—

(i) by striking paragraph (5) and by redesignating paragraphs (6) and (7) as paragraphs (5) and (6), respectively, and (ii) by striking ‘‘section 26(a)(2) or paragraph (5), as the case may be’’ in paragraph (5), as redesignated by clause (i), and inserting ‘‘section 26(a)’’. (E) SAVERS’
CREDIT.—Section

25B is

amended by striking subsection (g).

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23 1 2 3 4 (F) RESIDENTIAL
ENERGY EFFICIENT

PROPERTY.—Section

25D(c) is amended to read

as follows: ‘‘(c) CARRYFORWARD
OF

UNUSED CREDIT.—If the

5 credit allowable under subsection (a) exceeds the limita6 tion imposed by section 26(a) for such taxable year re7 duced by the sum of the credits allowable under this sub8 part (other than this section), such excess shall be carried 9 to the succeeding taxable year and added to the credit al10 lowable under subsection (a) for such succeeding taxable 11 year.’’. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (G) CERTAIN
CLES.—Section PLUG-IN ELECTRIC VEHI-

30(c)(2) is amended to read as

follows: ‘‘(2) PERSONAL
CREDIT.—For

purposes of this

title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.’’. (H) ALTERNATIVE
IT.—Section MOTOR VEHICLE CRED-

30B(g)(2) is amended to read as

follows: ‘‘(2) PERSONAL
CREDIT.—For

purposes of this

title, the credit allowed under subsection (a) for any taxable year (determined after application of para-

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24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
THE

graph (1)) shall be treated as a credit allowable under subpart A for such taxable year.’’. (I) NEW
VEHICLE QUALIFIED PLUG-IN ELECTRIC

CREDIT.—Section

30D(c)(2)

is

amended to read as follows: ‘‘(2) PERSONAL
CREDIT.—For

purposes of this

title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.’’. (J) 55(c)(3) is CROSS amended
REFERENCES.—Section

is amended by striking subsection (i) and by redesignating subsections (j) , (k), and (l) as subsections (i), (j), and (k), respectively. (L) FIRST-TIME
DISTRICT HOME BUYER CREDIT FOR OF COLUMBIA.—Section

1400C(d) is amended to read as follows: ‘‘(d) CARRYFORWARD
OF

UNUSED CREDIT.—If the

22 credit allowable under subsection (a) exceeds the limita23 tion imposed by section 26(a) for such taxable year re24 duced by the sum of the credits allowable under subpart 25 A of part IV of subchapter A (other than this section and

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25 1 section 25D), such excess shall be carried to the suc2 ceeding taxable year and added to the credit allowable 3 under subsection (a) for such taxable year.’’. 4 (d) EFFECTIVE DATE.—The amendments made by

by this section shall apply to distributions made in taxable years beginning after December 31, 2011. (2) SPECIAL
RULES.—For

purposes of sub-

sections (a)(6), (b)(3), and (d)(8) of section 408 of the Internal Revenue Code of 1986, at the election of the taxpayer (at such time and in such manner as prescribed by the Secretary of the Treasury)— (A) any qualified charitable distribution made after December 31, 2012, and before

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29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 February 1, 2013, shall be deemed to have been made on December 31, 2012, and (B) any portion of a distribution from an individual retirement account to the taxpayer after November 30, 2012, and before January 1, 2013, may be treated as a qualified charitable distribution to the extent that— (i) such portion is transferred in cash after the distribution to an organization described in section 408(d)(8)(B)(i) before February 1, 2013, and (ii) such portion is part of a distribution that would meet the requirements of section 408(d)(8) but for the fact that the distribution was not transferred directly to an organization described in section

408(d)(8)(B)(i).
SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION AUTHORIZING THE INTERNAL REVENUE SERVICE TO DISCLOSE CERTAIN RETURN AND RETURN INFORMATION TO CERTAIN PRISON OFFICIALS.

dures as the Secretary may prescribe, the Secretary may disclose to officers and employees of the Federal Bureau of Prisons and of any State agency charged with the responsibility for administration of prisons any returns or return information with respect to individuals incarcerated in Federal or State prison systems whom the Secretary has determined may have filed or facilitated the filing of a false or fraudulent return to the extent that the Secretary determines that such disclosure is necessary to permit effective Federal tax administration. ‘‘(B) DISCLOSURE
PRISONS.—Under TO CONTRACTOR-RUN

such procedures as the Sec-

retary may prescribe, the disclosures authorized by subparagraph (A) may be made to contractors responsible for the operation of a Federal or State prison on behalf of such Bureau or agency. ‘‘(C) RESTRICTIONS
ON USE OF DIS-

CLOSED INFORMATION.—Any

return or return

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31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
AND

information received under this paragraph shall be used only for the purposes of and to the extent necessary in taking administrative action to prevent the filing of false and fraudulent returns, including administrative actions to address possible violations of administrative rules and regulations of the prison facility and in administrative and judicial proceedings arising from such administrative actions. ‘‘(D) RESTRICTIONS
DISCLOSURE TO ON REDISCLOSURE REPRESENTA-

LEGAL

TIVES.—Notwithstanding

subsection (h)—
ON REDISCLO-

‘‘(i) RESTRICTIONS
SURE.—Except

as provided in clause (ii),

any officer, employee, or contractor of the Federal Bureau of Prisons or of any State agency charged with the responsibility for administration of prisons shall not disclose any information obtained under this paragraph to any person other than an officer or employee or contractor of such Bureau or agency personally and directly engaged in the administration of prison facilities on behalf of such Bureau or agency.

information disclosed under this paragraph may be disclosed to the duly authorized legal representative of the Federal Bureau of Prisons, State agency, or contractor charged with the responsibility for administration of prisons, or of the incarcerated individual accused of filing the false or fraudulent return who is a party to an action or proceeding described in subparagraph (C), solely in preparation for, or for use in, such action or proceeding.’’. (b) CONFORMING AMENDMENTS.— (1) Paragraph (3) of section 6103(a) is amended by inserting ‘‘subsection (k)(10),’’ after ‘‘subsection (e)(1)(D)(iii),’’. (2) Paragraph (4) of section 6103(p) is amend-

quires the major portion of either a trade or business or a separate unit of a trade or business (hereinafter in this paragraph referred to as the ‘acquired business’) of another person (hereinafter in this paragraph referred to as the ‘predecessor’), then the amount of qualified research expenses paid or incurred by the acquiring person during the measurement period shall be increased by the amount determined under clause (ii), and the gross receipts of the acquiring person for such period shall be increased by the amount determined under clause (iii). ‘‘(ii) AMOUNT
SPECT TO DETERMINED WITH RERESEARCH EX-

QUALIFIED

PENSES.—The

amount determined under

this clause is—

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35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ‘‘(I) for purposes of applying this section for the taxable year in which such acquisition is made, the acquisition year amount, and ‘‘(II) for purposes of applying this section for any taxable year after the taxable year in which such acquisition is made, the qualified research expenses paid or incurred by the predecessor with respect to the acquired business during the measurement period. ‘‘(iii) AMOUNT
RESPECT TO DETERMINED WITH

GROSS

RECEIPTS.—The

amount determined under this clause is the amount which would be determined under clause (ii) if ‘the gross receipts of’ were substituted for ‘the qualified research expenses paid or incurred by’ each place it appears in clauses (ii) and (iv). ‘‘(iv) ACQUISITION
YEAR AMOUNT.—

For purposes of clause (ii), the acquisition year amount is the amount equal to the product of—

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36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ‘‘(I) the qualified research expenses paid or incurred by the predecessor with respect to the acquired business during the measurement period, and ‘‘(II) the number of days in the period beginning on the date of the acquisition and ending on the last day of the taxable year in which the acquisition is made, divided by the number of days in the acquiring person’s taxable year. ‘‘(v) SPECIAL
RULES FOR COORDI-

NATING TAXABLE YEARS.—In

the case of

an acquiring person and a predecessor whose taxable years do not begin on the same date— ‘‘(I) each reference to a taxable year in clauses (ii) and (iv) shall refer to the appropriate taxable year of the acquiring person, ‘‘(II) the qualified research expenses paid or incurred by the predecessor, and the gross receipts of the predecessor, during each taxable year

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37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of the predecessor any portion of which is part of the measurement period shall be allocated equally among the days of such taxable year, ‘‘(III) the amount of such qualified research expenses taken into account under clauses (ii) and (iv) with respect to a taxable year of the acquiring person shall be equal to the total of the expenses attributable under subclause (II) to the days occurring during such taxable year, and ‘‘(IV) the amount of such gross receipts taken into account under clause (iii) with respect to a taxable year of the acquiring person shall be equal to the total of the gross receipts attributable under subclause (II) to the days occurring during such taxable year. ‘‘(vi) MEASUREMENT
PERIOD.—For

purposes of this subparagraph, the term ‘measurement period’ means, with respect to the taxable year of the acquiring person for which the credit is determined, any pe-

41(f)(3) is amended to read as follows: ‘‘(B) DISPOSITIONS.—If the predecessor furnished to the acquiring person such information as is necessary for the application of subparagraph (A), then, for purposes of applying this section for any taxable year ending after such disposition, the amount of qualified research expenses paid or incurred by, and the gross receipts of, the predecessor during the measurement period (as defined in subparagraph (A)(vi), determined by substituting ‘predecessor’ for ‘acquiring person’ each place it appears) shall be reduced by— ‘‘(i) in the case of the taxable year in which such disposition is made, an amount equal to the product of— ‘‘(I) the qualified research expenses paid or incurred by, or gross receipts of, the predecessor with re-

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39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 spect to the acquired business during the measurement period (as so defined and so determined), and ‘‘(II) the number of days in the period beginning on the date of acquisition (as determined for purposes of subparagraph (A)(iv)(II)) and ending on the last day of the taxable year of the predecessor in which the disposition is made, divided by the number of days in the taxable year of the predecessor, and ‘‘(ii) in the case of any taxable year ending after the taxable year in which such disposition is made, the amount described in clause (i)(I).’’. (c) AGGREGATION
OF

EXPENDITURES.—Paragraph

18 (1) of section 41(f) is amended— 19 20 21 22 23 24 25 (1) by striking ‘‘shall be its proportionate shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit’’ in subparagraph (A)(ii) and inserting ‘‘shall be determined on a proportionate basis to its share of the aggregate of the qualified research expenses,

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40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 basic research payments, and amounts paid or incurred to energy research consortiums, taken into account by such controlled group for purposes of this section’’, and (2) by striking ‘‘shall be its proportionate shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit’’ in subparagraph (B)(ii) and inserting ‘‘shall be determined on a proportionate basis to its share of the aggregate of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, taken into account by all such persons under common control for purposes of this section’’. (d) EFFECTIVE DATE.— (1) EXTENSION.—The amendments made by subsection (a) shall apply to amounts paid or incurred after December 31, 2011. (2) MODIFICATIONS.—The amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2011.

7 this section shall apply to taxable years beginning after 8 December 31, 2011. 9 10 11 12
SEC. 308. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED SERVICES.

amended by striking ‘‘2011’’ each place it appears and inserting ‘‘2013’’. (B) CONFORMING
AMENDMENT.—Subpara-

graph (C) of section 179(f)(4) is amended— (i) in the heading, by striking ‘‘2010’’ and inserting ‘‘2010, 2011 and (ii) by adding at the end the following: ‘‘For the last taxable year beginning in 2013, the amount determined under subsection (b)(3)(A) for such taxable year shall be determined without regard to this paragraph.’’.
AND

subsection (a) shall take effect on January 1, 2012. Notwithstanding the preceding sentence, such

amendment shall not apply with respect to the withholding requirement under section 1445 of the Internal Revenue Code of 1986 for any payment made before the date of the enactment of this Act. (2) AMOUNTS
WITHHELD ON OR BEFORE DATE

OF ENACTMENT.—In

the case of a regulated invest-

ment company—

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51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 (A) which makes a distribution after December 31, 2011, and before the date of the enactment of this Act; and (B) which would (but for the second sentence of paragraph (1)) have been required to withhold with respect to such distribution under section 1445 of such Code, such investment company shall not be liable to any person to whom such distribution was made for any amount so withheld and paid over to the Secretary of the Treasury.
SEC. 322. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.

2 this section shall apply to taxable years of foreign corpora3 tions beginning after December 31, 2011, and to taxable 4 years of United States shareholders with or within which 5 any such taxable year of such foreign corporation ends. 6 7 8 9 10
SEC. 323. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED CONTROLLED

14 this section shall apply to taxable years of foreign corpora15 tions beginning after December 31, 2011, and to taxable 16 years of United States shareholders with or within which 17 such taxable years of foreign corporations end. 18 19 20 21
SEC. 324. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL BUSINESS STOCK.

amended by adding at the end the following new flush sentence: ‘‘In the case of any stock which would be described in the preceding sentence (but for this sentence), the acquisition date for purposes of this subsection shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.’’. (2) 100
PERCENT EXCLUSION.—Paragraph

(4)

of section 1202(a) is amended by adding at the end the following new flush sentence: ‘‘In the case of any stock which would be described in the preceding sentence (but for this sentence), the acquisition date for purposes of this subsection shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.’’. (c) EFFECTIVE DATES.—

made by subsection (b)(1) shall take effect as if included in section 1241(a) of division B of the American Recovery and Reinvestment Act of 2009. (3) SUBSECTION (b)(2).—The amendment

made by subsection (b)(2) shall take effect as if included in section 2011(a) of the Creating Small Business Jobs Act of 2010.
SEC. 325. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

19 this section shall apply to contributions made in taxable 20 years beginning after December 31, 2011. 21 22 23 24
SEC. 326. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD FOR BUILT-IN GAINS TAX.

For purposes of determining the net recognized built-in gain for taxable years beginning in 2012 or 2013, subparagraphs (A) and (D) shall be applied by substituting ‘5-year’ for ‘10year’.’’, and (3) by adding at the end the following new subparagraph: ‘‘(E) INSTALLMENT
SALES.—If

an S cor-

poration sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made.’’. (b) TECHNICAL AMENDMENT.—Subparagraph (B) of

21 section 1374(d)(2) is amended by inserting ‘‘described in 22 subparagraph (A)’’ after ‘‘, for any taxable year’’. 23 (c) EFFECTIVE DATE.—The amendments made by

24 this section shall apply to taxable years beginning after 25 December 31, 2011.

15 tion of an empowerment zone the nomination for which 16 included a termination date which is contemporaneous 17 with the date specified in subparagraph (A)(i) of section 18 1391(d)(1) of the Internal Revenue Code of 1986 (as in 19 effect before the enactment of this Act), subparagraph (B) 20 of such section shall not apply with respect to such des21 ignation if, after the date of the enactment of this section, 22 the entity which made such nomination amends the nomi23 nation to provide for a new termination date in such man24 ner as the Secretary of the Treasury (or the Secretary’s 25 designee) may provide.

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57 1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to periods after December 31, 3 2011. 4 5 6
SEC. 328. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK LIBERTY ZONE.

19 this section shall apply to distilled spirits brought into the 20 United States after December 31, 2011. 21 22 23 24 25
SEC. 330. MODIFICATION AND EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

(a) MODIFICATION.— (1) IN
GENERAL.—Subsection

(a) of section

119 of division A of the Tax Relief and Health Care

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58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Act of 2006 is amended by striking ‘‘if such corporation’’ and all that follows and inserting ‘‘if— ‘‘(1) in the case of a taxable year beginning before January 1, 2012, such corporation— ‘‘(A) is an existing credit claimant with respect to American Samoa, and ‘‘(B) elected the application of section 936 of the Internal Revenue Code of 1986 for its last taxable year beginning before January 1, 2006, and ‘‘(2) in the case of a taxable year beginning after December 31, 2011, such corporation meets the requirements of subsection (e).’’. (2) REQUIREMENTS.—Section 119 of division A of such Act is amended by adding at the end the following new subsection: ‘‘(e) QUALIFIED PRODUCTION ACTIVITIES INCOME

18 REQUIREMENT.—A corporation meets the requirement of 19 this subsection if such corporation has qualified produc20 tion activities income, as defined in subsection (c) of sec21 tion 199 of the Internal Revenue Code of 1986, deter22 mined by substituting ‘American Samoa’ for ‘the United 23 States’ each place it appears in paragraphs (3), (4), and 24 (6) of such subsection (c), for the taxable year.’’.

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59 1 (b) EXTENSION.—Subsection (d) of section 119 of di-

2 vision A of the Tax Relief and Health Care Act of 2006 3 is amended by striking ‘‘shall apply’’ and all that follows 4 and inserting ‘‘shall apply— 5 6 7 8 9 10 11 12 13 14 15 ‘‘(1) in the case of a corporation that meets the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 8 taxable years of such corporation which begin after December 31, 2006, and before January 1, 2014, and ‘‘(2) in the case of a corporation that does not meet the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 2 taxable years of such corporation which begin after December 31, 2011, and before January 1, 2014.’’. (c) EFFECTIVE DATE.—The amendments made by

61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 payer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, or a taxpayer who made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010— ‘‘(I) the taxpayer may elect not to have this paragraph apply to round 3 extension property, but ‘‘(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 3 extension property. The amounts described in subclause (II) shall be computed separately from any amounts computed with respect to eligible qualified property which is not round 3 extension property.

a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, nor made the election under subparagraph (I)(iii) for any taxable year ending after December 31, 2010— ‘‘(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2012, and each subsequent taxable year, and ‘‘(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 3 extension property. ‘‘(iv) ROUND
ERTY.—For 3 EXTENSION PROP-

purposes of this subpara-

graph, the term ‘round 3 extension property’ means property which is eligible

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63 1 2 3 4 5 6 7 8 9 qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 331(a) of the American Taxpayer Relief Act of 2012 (and the application of such extension to this paragraph pursuant to the amendment made by section 331(c)(1) of such Act).’’. (d) NORMALIZATION RULES AMENDMENT.—Clause

2- or 3-wheeled plug-in electric vehicle— ‘‘(A) there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year, and ‘‘(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a). ‘‘(2) APPLICABLE
AMOUNT.—For

purposes of

paragraph (1), the applicable amount is an amount equal to the lesser of— ‘‘(A) 10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or ‘‘(B) $2,500. ‘‘(3) QUALIFIED
2- OR 3-WHEELED PLUG-IN

section 30D(f) is amended— (A) by striking ‘‘new qualified plug-in electric drive motor vehicle’’ and inserting ‘‘vehicle for which a credit is allowable under subsection (a)’’, and (B) by striking ‘‘allowed under subsection (a)’’ and inserting ‘‘allowed under such subsection’’.

amended by redesignating subparagraphs (F), (G), and (H), as amended by this Act, as subparagraphs (H), (I), and (J), respectively, and by inserting after subparagraph (E) the following new subparagraphs: ‘‘(F) QUALIFIED
FEEDSTOCK.—For

pur-

poses of this paragraph, the term ‘qualified feedstock’ means— ‘‘(i) any lignocellulosic or

hemicellulosic matter that is available on a renewable or recurring basis, and ‘‘(ii) any cultivated algae,

case of fuel which is derived by, or from, feedstock described in subparagraph (F)(ii) and which is sold by the taxpayer to another person for refining by such other person into a fuel which meets the requirements of subparagraph (E)(i)(II) and the refined fuel is not excluded under subparagraph (E)(iii)— ‘‘(i) such sale shall be treated as described in subparagraph (C)(i), ‘‘(ii) such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) and as not being excluded under subparagraph (E)(iii) in the hands of such taxpayer, and ‘‘(iii) except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under subparagraph (C) with respect to the taxpayer or any other person.’’. (3) CONFORMING
AMENDMENTS.—

(i) by striking ‘‘cellulosic biofuel’’ each place it appears in the text thereof and inserting ‘‘second generation biofuel’’, (ii) by striking ‘‘CELLULOSIC’’ in the headings of subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting ‘‘SECOND
GENERATION’’,

and

(iii) by striking ‘‘CELLULOSIC’’ in the headings of subsections (b)(6)(C),

‘‘, except that such term does not include paper which is commonly recycled and which has been segregated from other solid waste (as so defined)’’ after ‘‘(42 U.S.C. 6903)’’. (3) MODIFICATION
FIED FACILITY.— TO DEFINITION OF QUALI-

(A) IN

GENERAL.—The

following provi-

sions of section 45(d), as amended by paragraph (1), are each amended by striking ‘‘before January 1, 2014’’ and inserting ‘‘the construction of which begins before January 1, 2014’’: (i) Paragraph (1). (ii) Paragraph (2)(A)(i).

45(d)(2) is amended by adding at the end the following new flush sentence: ‘‘For purposes of clause (ii), a facility shall be treated as modified before January 1, 2014, if the construction of such modification begins before such date.’’. (C) CERTAIN
TIES.—Clause OPEN-LOOP BIOMASS FACILI-

(ii) of section 45(d)(3)(A) is

amended by striking ‘‘is originally placed in service’’ and inserting ‘‘the construction of which begins’’. (D) GEOTHERMAL (i) IN
FACILITIES.—

GENERAL.—Paragraph

(4) of

section 45(d) is amended by striking ‘‘and before January 1, 2014’’ and all that follows and inserting ‘‘and which—

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74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ity’’, (iii) by redesignating subparagraph (C) as subparagraph (B), and ‘‘(A) in the case of a facility using solar energy, is placed in service before January 1, 2006, or ‘‘(B) in the case of a facility using geothermal energy, the construction of which begins before January 1, 2014. Such term shall not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.’’. (E) INCREMENTAL
TION.—Paragraph HYDROPOWER PRODUC-

(9) of section 45(d) is

amended— (i) by redesignating subparagraphs (A) and (B), as amended by subparagraph (A), as clauses (i) and (ii), respectively, and by moving such clauses (as so redesignated) 2 ems to the right, (ii) by striking ‘‘In the case of a facility’’ and inserting the following: ‘‘(A) IN
GENERAL.—In

the case of a facil-

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75 1 2 3 4 5 6 7 8 9 (iv) by adding at the end the following new subparagraph: ‘‘(C) SPECIAL
RULE.—For

purposes of

subparagraph (A)(i), an efficiency improvement or addition to capacity shall be treated as placed in service before January 1, 2014, if the construction of such improvement or addition begins before such date.’’. (b) EXTENSION
AS OF

term ‘qualified investment credit facility’ means any facility— ‘‘(i) which is a qualified facility (within the meaning of section 45) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d), ‘‘(ii) which is placed in service after 2008 and the construction of which begins before January 1, 2014, and ‘‘(iii) with respect to which— ‘‘(I) no credit has been allowed under section 45, and

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76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ‘‘(II) the taxpayer makes an irrevocable election to have this paragraph apply.’’. (c) TECHNICAL CORRECTIONS.— (1) Subparagraph (D) of section 48(a)(5) is amended— (A) by striking ‘‘and’’ at the end of clause (i)(II), (B) by striking the period at the end of clause (ii) and inserting a comma, and (C) by adding at the end the following new clauses: ‘‘(iii) which is constructed, reconstructed, erected, or acquired by the taxpayer, and ‘‘(iv) the original use of which commences with the taxpayer.’’. (2) Paragraphs (1) and (2) of subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 are each amended by striking ‘‘placed in service’’ and inserting ‘‘originally placed in service by such person’’. (d) EFFECTIVE DATES.— (1) IN
GENERAL.—Except

section (a)(2) shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date. (3) TECHNICAL
CORRECTIONS.—The

amend-

ments made by subsection (c) shall apply as if included in the enactment of the provisions of the American Recovery and Reinvestment Act of 2009 to which they relate.
SEC. 408. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

19 section 45L(c)(1)(A) is amended by striking ‘‘2003 Inter20 national Energy Conservation Code, as such Code (includ21 ing supplements) is in effect on the date of the enactment 22 of this section’’and inserting ‘‘2006 International Energy 23 Conservation Code, as such Code (including supplements) 24 is in effect on January 1, 2006’’.

(l) of section 168, as amended by subsection (a), is amended— (A) by striking ‘‘cellulosic biofuel’’ each place it appears in the text thereof and inserting ‘‘second generation biofuel’’, (B) by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively, (C) by striking ‘‘CELLULOSIC’’ in the heading of such subsection and inserting ‘‘SECOND

by this subsection shall apply to property placed in service after the date of the enactment of this Act.
SEC. 411. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR

4 mental Appropriations Act, 2008 (Public Law 110–252; 5 26 U.S.C. 3304 note) is amended— 6 7 8 9 10 11 12 13 (1) in subparagraph (H), by striking ‘‘and’’ at the end; and (2) by inserting after subparagraph (I) the following: ‘‘(J) the amendments made by section 501(a) of the American Taxpayer Relief Act of 2012;’’. (c) EFFECTIVE DATE.—The amendments made by

14 this section shall take effect as if included in the enact15 ment of the Unemployment Benefits Extension Act of 16 2012 (Public Law 112–96) 17 18 19
SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

(a) IN GENERAL.—Section 2005 of the Assistance for

20 Unemployed Workers and Struggling Families Act, as 21 contained in Public Law 111–5 (26 U.S.C. 3304 note), 22 is amended— 23 24 25 (1) by striking ‘‘December 31, 2012’’ each place it appears and inserting ‘‘December 31, 2013’’; and

18 this section shall take effect as if included in the enact19 ment of the Unemployment Benefits Extension Act of 20 2012 (Public Law 112–96). 21 22 23 24
SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND REEMPLOYMENT AND ELIGIBILITY ASSESSMENT ACTIVITIES.

5 this section shall take effect as if included in the enact6 ment of the Unemployment Benefits Extension Act of 7 2012 (Public Law 112–96). 8 9 10 11
SEC. 504. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD UNEMPLOY-

MENT INSURANCE ACT.

(a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail-

12 road Unemployment Insurance Act, as added by section 13 2006 of the American Recovery and Reinvestment Act of 14 2009 (Public Law 111–5) and as amended by section 9 15 of the Worker, Homeownership, and Business Assistance 16 Act of 2009 (Public Law 111–92), section 505 of the Tax 17 Relief, Unemployment Insurance Reauthorization, and 18 Job Creation Act of 2010 (Public Law 111–312), section 19 202 of the Temporary Payroll Tax Cut Continuation Act 20 of 2011 (Public Law 112–78), and section 2124 of the 21 Unemployment Benefits Extension Act of 2012 (Public 22 Law 112–96), is amended— 23 24 (1) by striking ‘‘June 30, 2012’’ and inserting ‘‘June 30, 2013’’; and

4 FUNDS.—Funds appropriated under either the first or 5 second sentence of clause (iv) of section 2(c)(2)(D) of the 6 Railroad Unemployment Insurance Act shall be available 7 to cover the cost of additional extended unemployment 8 benefits provided under such section 2(c)(2)(D) by reason 9 of the amendments made by subsection (a) as well as to 10 cover the cost of such benefits provided under such section 11 2(c)(2)(D), as in effect on the day before the date of en12 actment of this Act. 13 (c) FUNDING
FOR

ADMINISTRATION.—Out of any

14 funds in the Treasury not otherwise appropriated, there 15 are appropriated to the Railroad Retirement Board 16 $250,000 for administrative expenses associated with the 17 payment of additional extended unemployment benefits 18 provided under section 2(c)(2)(D) of the Railroad Unem19 ployment Insurance Act by reason of the amendments 20 made by subsection (a), to remain available until ex21 pended.

(12)(B), and (13)(B), in lieu of the update to the single conversion factor established in paragraph (1)(C) that would otherwise apply for 2013, the update to the single conversion factor for such year shall be zero percent. ‘‘(B) NO
EFFECT ON COMPUTATION OF

CONVERSION FACTOR FOR 2014 AND SUBSEQUENT YEARS.—The

conversion factor under

this subsection shall be computed under paragraph (1)(A) for 2014 and subsequent years as if subparagraph (A) had never applied.’’. (b) ADVANCEMENT
OF

Social Security Act (42 U.S.C. 1395w–4(m)(3)) is amended— (A) by redesignating subparagraph (D) as subparagraph (F); and (B) by inserting after subparagraph (C) the following new subparagraphs: ‘‘(D) SATISFACTORY
REPORTING MEAS-

URES THROUGH PARTICIPATION IN A QUALIFIED CLINICAL DATA REGISTRY.—For

2014

and subsequent years, the Secretary shall treat an eligible professional as satisfactorily submitting data on quality measures under subparagraph (A) if, in lieu of reporting measures under subsection (k)(2)(C), the eligible professional is satisfactorily participating, as determined by the Secretary, in a qualified clinical data registry (as described in subparagraph (E)) for the year. ‘‘(E) QUALIFIED
ISTRY.— CLINICAL DATA REG-

‘‘(i) IN

GENERAL.—The

Secretary

shall establish requirements for an entity to be considered a qualified clinical data registry. Such requirements shall include a

lishing the requirements under clause (i), the Secretary shall consider whether an entity— ‘‘(I) has in place mechanisms for the transparency of data elements and specifications, risk models, and measures; ‘‘(II) requires the submission of data from participants with respect to multiple payers; ‘‘(III) provides timely performance reports to participants at the individual participant level; and ‘‘(IV) supports quality improvement initiatives for participants. ‘‘(iii) MEASURES.—With respect to measures used by a qualified clinical data registry—

1890A(a) shall not apply; and ‘‘(II) measures endorsed by the entity with a contract with the Secretary under section 1890(a) may be used. ‘‘(iv) CONSULTATION.—In carrying

out this subparagraph, the Secretary shall consult with interested parties. ‘‘(v) DETERMINATION.—The Sec-

retary shall establish a process to determine whether or not an entity meets the requirements established under clause (i). Such process may involve one or both of the following: ‘‘(I) A determination by the Secretary. ‘‘(II) A designation by the Secretary of one or more independent organizations to make such determination.’’. (2) GAO
STUDY AND REPORT ON INCOR-

PORATING REGISTRY DATA INTO THE MEDICARE PROGRAM IN ORDER TO IMPROVE QUALITY AND EFFICIENCY.—

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90 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 (A) STUDY.—The Comptroller General of the United States shall conduct a study on the potential of clinical data registries to improve the quality and efficiency of care in the Medicare program, including through payment system incentives. Such study shall include an analysis of the role of health information technology in facilitating clinical data registries and the use of data from such registries among private health insurers as well as other entities the Comptroller General determines appropriate. (B) REPORT.—Not later than November 15, 2013, the Comptroller General of the United States shall submit to Congress a report on the study conducted under subparagraph (A), together with recommendations for such legislation and administrative action as the Comptroller General determines appropriate.
SEC. 602. WORK GEOGRAPHIC ADJUSTMENT.

14 HOSPITAL SERVICES.—Section 1833(g)(6) of the Social 15 Security Act (42 U.S.C. 1395l(g)(6)), as amended by sub16 section (a), is amended— 17 18 19 20 21 (1) by striking ‘‘In applying’’ and inserting ‘‘(A) In applying’’; and (2) by adding at the end the following new subparagraph: ‘‘(B)(i) With respect to outpatient therapy services

22 furnished beginning on or after January 1, 2013, and be23 fore January 1, 2014, for which payment is made under 24 section 1834(g), the Secretary shall count toward the uni25 form dollar limitations described in paragraphs (1) and 26 (3) and the threshold described in paragraph (5)(C) the

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92 1 amount that would be payable under this part if such serv2 ices were paid under section 1834(k)(1)(B) instead of 3 being paid under section 1834(g). 4 ‘‘(ii) Nothing in clause (i) shall be construed as

8 1833(g)(5) of the Social Security Act (42 U.S.C. 9 1395l(g)(5)) is amended by adding at the end the fol10 lowing new subparagraph: 11 ‘‘(D) With respect to services furnished on or after

12 January 1, 2013, where payment may not be made as a 13 result of application of paragraphs (1) and (3), section 14 1879 shall apply in the same manner as such section ap15 plies to a denial that is made by reason of section 16 1862(a)(1).’’. 17 (d) IMPLEMENTATION.—Notwithstanding any other

18 provision of law, the Secretary of Health and Human 19 Services may implement the provisions of, and the amend20 ments made by, this section by program instruction or oth21 erwise. 22 23
SEC. 604. AMBULANCE ADD-ON PAYMENTS.

(a) GROUND AMBULANCE.—Section 1834(l)(13)(A)

24 of the Social Security Act (42 U.S.C. 1395m(l)(13)(A)) 25 is amended—

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93 1 2 3 4 5 6 7 (1) in the matter preceding clause (i), by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’; and (2) in each of clauses (i) and (ii), by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’ each place it appears. (b) AIR AMBULANCE.—Section 146(b)(1) of the

Health and Human Services (in this subsection referred to as the ‘‘Secretary’’) shall conduct a study of each of the following: (A) A study that analyzes data on existing cost reports for ambulance services furnished by hospitals and critical access hospitals, including variation by characteristics of such providers of services. (B) A study of the feasibility of obtaining cost data on a periodic basis from all ambulance providers of services and suppliers for potential use in examining the appropriateness of the Medicare add-on payments for ground ambulance services furnished under the fee schedule under section 1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) and in preparing for future reform of such payment system. (2) COMPONENTS
OF ONE OF THE STUDIES.—

In conducting the study under paragraph (1)(B), the Secretary shall— (A) consult with industry on the design of such cost collection efforts;

than October 1, 2013, the Secretary shall submit a report to Congress on the study conducted under paragraph (1)(A), together with recommendations for such legislation and administrative action as the Secretary determines appropriate. (B) OBTAINING
COST DATA.—Not

later

than July 1, 2014, the Secretary shall submit a report to Congress on the study conducted under paragraph (1)(B), together with recommendations for such legislation and adminis-

cial Security Act (42 U.S.C. 1395aaa(d)) is amended by striking ‘‘fiscal years 2009 through 2012’’ and inserting ‘‘fiscal years 2009 through 2013’’. (2) REVISION
TO DUTIES.—Section

1890(b) of

the Social Security Act (42 U.S.C. 1395aaa(b)) is amended by striking paragraph (4). (b) PROVIDING DATA
MENT IN A FOR

PERFORMANCE IMPROVE-

TIMELY MANNER.—
GENERAL.—The

(1) IN

Secretary of Health and

Human Services (in this subsection referred to as the ‘‘Secretary’’) shall develop a strategy to provide data for performance improvement in a timely manner to applicable providers under the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.), including with respect to the provision of the following:

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99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (A) Utilization data, including such data for items and services under parts A, B, and D of the Medicare program. (B) Feedback on quality data submitted by the applicable provider under the Medicare program. (2) CONSIDERATIONS.—In developing the strategy under paragraph (1), the Secretary shall consider— (A) the type of applicable provider receiving the data; (B) the frequency of providing the data so that it can be the most relevant in improving provider performance; (C) risk adjustment methods; (D) presentation of the data in a meaningful manner and easily understandable format; (E) with respect to utilization data, the provision of data that the Secretary determines would be useful to improve the performance of the type of applicable provider involved; and (F) administrative costs involved with providing data.

the enactment of this Act, the Secretary shall— (A) submit to the relevant committees of Congress the strategy described in paragraph (1); and (B) post such strategy on the website of the Centers for Medicare & Medicaid Services. (4) STRATEGY
UPDATE.— FROM STAKEHOLDERS.—

(A) FEEDBACK

The Secretary shall seek feedback from stakeholders on the initial strategy submitted under paragraph (3). (B) STRATEGY shall— (i) update the strategy described in paragraph (1) based on the feedback submitted under subparagraph (A); and (ii) not later than 18 months after the date of the enactment of this Act— (I) submit such updated strategy to the relevant committees of Congress; and
UPDATE.—The

(A) STUDY.—The Comptroller General of the United States (in this paragraph referred to as the ‘‘Comptroller General’’) shall conduct a study on information sharing activities. Such study shall include an analysis of— (i) how private sector entities share timely data with hospitals, physicians, and other providers and what lessons can be learned from those activities; (ii) how the Medicare program currently shares data with providers, including what data is provided and to which providers, and what divisions within the Centers for Medicare & Medicaid Services oversee those efforts; (iii) what, if any, differences there are between the private sector and the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) in terms of sharing data; and

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102 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (iv) what, if any, barriers there are for the Centers for Medicare & Medicaid Services to sharing timely data with applicable providers and recommendations to eliminate or reduce such barriers. (B) REPORT.—Not later than 8 months after the date of the enactment of this Act, the Comptroller General shall submit to the relevant committees of Congress a report containing the results of the study conducted under subparagraph (A), together with recommendations for such legislation and administrative action as the Comptroller General determines appropriate. (6) DEFINITIONS.—In this subsection: (A) APPLICABLE
PROVIDER.—The

term ‘‘performance improvement’’ means improvements in quality, reducing per capita costs, and other criteria the Secretary determines appropriate.
SEC. 610. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME PROGRAMS.

(a) ADDITIONAL FUNDING
SURANCE

FOR

STATE HEALTH IN-

PROGRAMS.—Subsection (a)(1)(B) of section

13 119 of the Medicare Improvements for Patients and Pro14 viders Act of 2008 (42 U.S.C. 1395b–3 note), as amended 15 by section 3306 of the Patient Protection and Affordable 16 Care Act Public Law 111–148), is amended— 17 18 19 20 21 22 23 (1) in clause (i), by striking ‘‘and’’ at the end; (2) in clause (ii), by striking the period at the end and inserting ‘‘; and’’; and (3) by inserting after clause (ii) the following new clause: ‘‘(iii) for fiscal year 2013, of

$7,500,000.’’.

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104 1 (b) ADDITIONAL FUNDING
FOR

AREA AGENCIES

ON

2 AGING.—Subsection (b)(1)(B) of such section 119, as so 3 amended, is amended— 4 5 6 7 8 9 10 11 12 (1) in clause (i), by striking ‘‘and’’ at the end; (2) in clause (ii), by striking the period at the end and inserting ‘‘; and’’; and (3) by inserting after clause (ii) the following new clause: ‘‘(iii) for fiscal year 2013, of

(1) in clause (i), by striking ‘‘and’’ at the end; (2) in clause (ii), by striking the period at the end and inserting ‘‘; and’’; and (3) by inserting after clause (ii) the following new clause: ‘‘(iii) for fiscal year 2013, of

$5,000,000.’’. (d) ADDITIONAL FUNDING NATIONAL CENTER
FOR FOR

CONTRACT WITH
AND

BENEFITS

OUTREACH

23 ENROLLMENT.—Subsection (d)(2) of such section 119, as 24 so amended, is amended— 25 (1) in clause (i), by striking ‘‘and’’ at the end;

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105 1 2 3 4 5 6 7 8 9 10 11 (2) in clause (ii), by striking the period at the end and inserting ‘‘; and’’; and (3) by inserting after clause (ii) the following new clause: ‘‘(iii) for fiscal year 2013, of

12 Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 13 amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 14 (b) EXTENDING TOTAL AMOUNT AVAILABLE
FOR

15 ALLOCATION.—Section 1933(g) of such Act (42 U.S.C. 16 1396u–3(g)) is amended— 17 18 19 20 21 22 23 24 (1) in paragraph (2)— (A) in subparagraph (Q), by striking ‘‘and’’ after the semicolon; (B) in subparagraph (R), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following new subparagraphs:

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106 1 2 3 4 5 6 7 8 9 10 11 12 ‘‘(S) for the period that begins on January 1, 2013, and ends on September 30, 2013, the total allocation amount is $485,000,000; and ‘‘(T) for the period that begins on October 1, 2013, and ends on December 31, 2013, the total allocation amount is $300,000,000.’’; and (2) in paragraph (3), in the matter preceding subparagraph (A), by striking ‘‘or (R)’’ and inserting ‘‘(R), or (T)’’.
SEC. 622. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

amendments made by subsection (b) shall be construed as changing the existing authority under section 1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)) to make prospective documentation and coding adjustments to the standardized amounts under such section 1886(d) to correct for changes in the coding or classification of discharges that do not reflect real changes in case mix. (2) CLARIFICATION.—Effective on the date of the enactment of this section, except as provided in

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108 1 2 3 4 5 6 7 8 section 7(b)(1)(B)(ii) of the TMA, Abstinence Education, and QI Programs Extension Act of 2007, as added by subsection (b)(2)(A)(ii)(IV) of this section, the Secretary of Health and Human Services shall not have authority to fully recoup past overpayments related to documentation and coding changes from fiscal years 2008 and 2009. (b) ADJUSTMENT.—Section 7 of the TMA, Absti-

(2) in subsection (b)— (A) in paragraph (1)— (i) in the matter before subparagraph (A)— (I) by striking ‘‘or 2009’’ and inserting ‘‘, 2009, or 2010’’; and (II) by inserting ‘‘or otherwise applied for such year’’ after ‘‘applied under subsection (a)’’; and (ii) in subparagraph (B)—

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109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (I) ‘‘(B)’’; (II) by striking ‘‘or decrease’’; (III) by striking the period at the end and inserting ‘‘; and’’; and (IV) by adding at the end the following: ‘‘(ii) make an additional adjustment to the standardized amounts under such section by inserting ‘‘(i)’’ after

1886(d) based upon the Secretary’s estimates for discharges occurring only during fiscal years 2014, 2015, 2016, and 2017 to fully offset $11,000,000,000 (which represents the amount of the increase in aggregate payments from fiscal years 2008 through 2013 for which an adjustment was not previously applied).’’; and (B) in paragraph (3)— (i) in subparagraph (A), by inserting before the semicolon the following: ‘‘or affecting the Secretary’s authority under such paragraph to apply a prospective adjustment to offset aggregate additional payments related to documentation and coding improvements made with respect to discharges during fiscal year 2010’’; and

10 1881(b)(14) of the Social Security Act (42 U.S.C. 11 1395rr(b)(14)) is amended by adding at the end the fol12 lowing new subparagraph: 13 ‘‘(I) For services furnished on or after January 1,

14 2014, the Secretary shall, by comparing per patient utili15 zation data from 2007 with such data from 2012, make 16 reductions to the single payment that would otherwise 17 apply under this paragraph for renal dialysis services to 18 reflect the Secretary’s estimate of the change in the utili19 zation of drugs and biologicals described in clauses (ii), 20 (iii), and (iv) of subparagraph (B) (other than oral-only 21 ESRD-related drugs, as such term is used in the final rule 22 promulgated by the Secretary in the Federal Register on 23 August 12, 2010 (75 Fed. Reg. 49030)). In making reduc24 tions under the preceding sentence, the Secretary shall 25 take into account the most recently available data on aver-

Human Services may not implement the policy under section 413.174(f)(6) of title 42, Code of Federal Regulations (relating to oral-only ESRD-related drugs in the ESRD prospective payment system), prior to January 1, 2016. (2) MONITORING.—With respect to the implementation of oral-only ESRD-related drugs in the ESRD prospective payment system under subsection (b)(14) of section 1881 of the Social Security Act (42 U.S.C. 1395rr(b)(14)), the Secretary of Health and Human Services shall monitor the bone and mineral metabolism of individuals with end stage renal disease. (c) ANALYSIS
MENTS.—By OF

CASE MIX PAYMENT ADJUST-

not later than January 1, 2016, the Sec-

23 retary of Health and Human Services shall— 24 25 (1) conduct an analysis of the case mix payment adjustments being used under section

6 cember 31, 2015, the Comptroller General of the United 7 States shall submit to Congress a report that updates the 8 report submitted to Congress under section 10336 of the 9 Patient Protection and Affordable Care Act (Public Law 10 111–148; 124 Stat. 974). The updated report shall include 11 an analysis of how the Secretary of Health and Human 12 Services has addressed points raised in the report sub13 mitted under such section 10336 with respect to the Sec14 retary’s preparations to implement payment for oral-only 15 ESRD-related drugs in the bundled prospective payment 16 system under section 1881(b)(14) of the Social Security 17 Act (42 U.S.C. 1395rr(b)(14)). 18 19 20 21
TAIN
SEC. 633. TREATMENT OF MULTIPLE SERVICE PAYMENT POLICIES FOR THERAPY SERVICES.

113 1 2 3 4 5 6 7 8 (2) by adding at the end the following new sentence: ‘‘In the case of such services furnished on or after April 1, 2013, and for which payment is made under such fee schedules, instead of the 25 percent multiple procedure payment reduction specified in such final rule, the reduction percentage shall be 50 percent.’’. (b) SERVICES FURNISHED
BY

OTHER PROVIDERS.—

9 Section 1834(k) of the Social Security Act (42 U.S.C. 10 1395m(k)) is amended by adding at the end the following 11 new paragraph: 12 13 14 15 16 17 18 19 20 21 ‘‘(7) ADJUSTMENT
IN DISCOUNT FOR CERTAIN

MULTIPLE THERAPY SERVICES.—In

the case of ther-

apy services furnished on or after April 1, 2013, and for which payment is made under this subsection pursuant to the applicable fee schedule amount (as defined in paragraph (3)), instead of the 25 percent multiple procedure payment reduction specified in the final rule published by the Secretary in the Federal Register on November 29, 2010, the reduction percentage shall be 50 percent.’’.

ered OPD services furnished on or after April 1, 2013, in a hospital described in clause (ii), if— ‘‘(I) the payment rate that would otherwise apply under this subsection for stereotactic radiosurgery, complete course of treatment of cranial lesion(s) consisting of 1 session that is multi-source Cobalt 60 based (identified as of January 1, 2013, by HCPCS code 77371 (and any succeeding code) and reimbursed as of such date under APC 0127 (and any succeeding classification group)); exceeds ‘‘(II) the payment rate that would otherwise apply under this sub-

course of therapy in one session (identified as of January 1, 2013, by HCPCS code G0173 (and any succeeding code) and reimbursed as of such date under APC 0067 (and any succeeding classification group)), the payment rate for the service described in subclause (I) shall be reduced to an amount equal to the payment rate for the service described in subclause (II). ‘‘(ii) HOSPITAL
DESCRIBED.—A

hos-

pital described in this clause is a hospital that is not— ‘‘(I) located in a rural area (as defined in section 1886(d)(2)(D)); ‘‘(II) classified as a rural referral center under section 1886(d)(5)(C); or ‘‘(III) a sole community hospital defined in section

1886(d)(5)(D)(iii)). ‘‘(iii) NOT
BUDGET NEUTRAL.—In

making any budget neutrality adjustments

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116 1 2 3 4 5 6 7 8 9 10 under this subsection for 2013 (with respect to covered OPD services furnished on or after April 1, 2013, and before January 1, 2014) or a subsequent year, the Secretary shall not take into account the reduced expenditures that result from the application of this subparagraph.’’.
SEC. 635. ADJUSTMENT OF EQUIPMENT UTILIZATION RATE FOR ADVANCED IMAGING SERVICES.

Section 1848 of the Social Security Act (42 U.S.C.

11 1395w–4) is amended— 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) in subsection (b)(4)(C)— (A) by striking ‘‘and subsequent years’’ and inserting ‘‘, 2012, and 2013’’; and (B) by adding at the end the following new sentence: ‘‘With respect to fee schedules established for 2014 and subsequent years, in such methodology, the Secretary shall use a 90 percent utilization rate.’’; and (2) in subsection (c)(2)(B)(v)(III), by striking ‘‘change in the utilization rate applicable to 2011, as described in’’ and inserting ‘‘changes in the utilization rate applicable to 2011 and 2014, as described in the first and second sentence, respectively, of’’.

date described in clause (ii), the payment amount under this part for diabetic supplies, including testing strips, that are nonmail order items (as defined by the Secretary) shall be equal to the single payment amounts established under the national mail order competition for diabetic supplies under section 1847. ‘‘(ii) DATE
DESCRIBED.—The

date de-

scribed in this clause is the date of the implementation of the single payment

sions of this subsection, for purposes of determining the payment amount under this subsection for diabetic supplies furnished on or after the first day of the calendar quarter during 2013 that is at least 30 days after the date of the enactment of this paragraph and before the date described in paragraph (1)(H)(ii), the Secretary shall recalculate and apply the covered item update under paragraph (14) as if subparagraph (J)(i) of such paragraph was amended by striking ‘but only if furnished through mail order’.’’.
SEC. 637. MEDICARE PAYMENT ADJUSTMENT FOR NONEMERGENCY AMBULANCE TRANSPORTS FOR ESRD BENEFICIARIES.

Section 1834(l) of the Social Security Act (42 U.S.C.

24 1395m(l)) is amended by adding at the end the following 25 new paragraph:

plicable under the preceding provisions of this subsection shall be reduced by 10 percent for ambulance services furnished on or after October 1, 2013, consisting of non-emergency basic life support services involving transport of an individual with end-stage renal disease for renal dialysis services (as described in section 1881(b)(14)(B)) furnished other than on an emergency basis by a provider of services or a renal dialysis facility.’’.
SEC. 638. REMOVING OBSTACLES TO COLLECTION OF OVERPAYMENTS.

spect to fiscal year 2022, the DSH allotment for a State, in lieu of the amount determined under paragraph (3) for the State for that year, shall be equal to the DSH allotment for the State for fiscal year 2021, as determined under subparagraph (A), increased, subject to subparagraphs (B) and (C) of paragraph (3), and paragraph (5), by the percentage change in the consumer price index for all urban consumers (all items; U.S. city average), for fiscal year 2021. ‘‘(C) SUBSEQUENT
FISCAL YEARS.—The

DSH allotment for a State for fiscal years after fiscal year 2022 shall be calculated under paragraph (3) without regard to this paragraph and paragraph (7).’’.

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122 1 2
SEC. 642. REPEAL OF CLASS PROGRAM.

(a) REPEAL.—Title XXXII of the Public Health

3 Service Act (42 U.S.C. 300ll et seq.; relating to the 4 CLASS program) is repealed. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (b) CONFORMING CHANGES.— (1) Title VIII of the Patient Protection and Affordable Care Act (Public Law 111–148; 124 Stat. 119, 846–847) is repealed. (2) Section 1902(a) of the Social Security Act (42 U.S.C. 1396a(a)) is amended— (A) by striking paragraphs (81) and (82); (B) in paragraph (80), by inserting ‘‘and’’ at the end; and (C) by redesignating paragraph (83) as paragraph (81). (3) Paragraphs (2) and (3) of section 6021(d) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396p note) are amended to read as such paragraphs were in effect on the day before the date of the enactment of section 8002(d) of the Patient Protection and Affordable Care Act (Public Law 111– 148). Of the funds appropriated by paragraph (3) of such section 6021(d), as amended by the Patient Protection and Affordable Care Act, the unobligated balance is rescinded.

velop a plan for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures the availability of long-term services and supports for individuals in need of such services and supports, including elderly individuals, individuals with substantial cognitive or functional limitations, other individuals who require assistance to perform activities of daily living, and individuals desiring to plan for future long-term care needs. (2) EXISTING
HEALTH CARE PROGRAMS.—For

purposes of developing the plan described in paragraph (1), the Commission shall provide recommendations for— (A) addressing the interaction of a longterm services and support system with existing programs for long-term services and supports, including the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and the Medicaid program under

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124 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 title XIX of the Social Security Act (42 U.S.C. 1396 et seq.), and private long-term care insurance; (B) improvements to such health care programs that are necessary for ensuring the availability of long-term services and supports; and (C) issues related to workers who provide long-term services and supports, including— (i) whether the number of such workers is adequate to provide long-term services and supports to individuals with longterm care needs; (ii) workforce development necessary to deliver high-quality services to such individuals; (iii) development of entities that have the capacity to serve as employers and fiscal agents for workers who provide longterm services and supports in the homes of such individuals; and (iv) addressing gaps in Federal and State infrastructure that prevent delivery of high-quality long term services and supports to such individuals.

poses of developing the plan described in paragraph (1), the Commission shall take into account projected demographic changes and trends in the population of the United States, as well as the potential for development of new technologies, delivery systems, or other mechanisms to improve the availability and quality of long-term services and supports. (4) CONSULTATION.—For purposes of developing the plan described in paragraph (1), the Commission shall consult with the Medicare Payment Advisory Commission, the Medicaid and CHIP Payment and Access Commission, the National Council on Disability, and relevant consumer groups. (c) MEMBERSHIP.— (1) IN
GENERAL.—The

Commission shall be

composed of 15 members, to be appointed not later than 30 days after the date of enactment of this Act, as follows: (A) The President of the United States shall appoint 3 members. (B) The majority leader of the Senate shall appoint 3 members.

Commission shall elect a chairman and vice chairman from among its members. (4) VACANCIES.—Any vacancy in the membership of the Commission shall be filled in the manner in which the original appointment was made and shall not affect the power of the remaining members to execute the duties of the Commission. (5) QUORUM.—A quorum shall consist of 8 members of the Commission, except that 4 members may conduct a hearing under subsection (e)(1). (6) MEETINGS.—The Commission shall meet at the call of its chairman or a majority of its members. (7) COMPENSATION
EXPENSES.— AND REIMBURSEMENT OF

sion to exercise its powers, functions, and duties, there are authorized to be disbursed by the Senate the actual and necessary expenses of the Commission approved by the chairman and vice chairman, subject to subparagraph (B) and the rules and regulations of the Senate. (B) MEMBERS.—Members of the Commission are not entitled to receive compensation for service on the Commission. Members may be reimbursed for travel, subsistence, and other necessary expenses incurred in carrying out the duties of the Commission. (d) STAFF AND ETHICAL STANDARDS.— (1) STAFF.—The chairman and vice chairman of the Commission may jointly appoint and fix the compensation of staff as they deem necessary, within the guidelines for employees of the Senate and following all applicable rules and employment requirements of the Senate. (2) ETHICAL
STANDARDS.—Members

of the

Commission who serve in the House of Representatives shall be governed by the ethics rules and requirements of the House. Members of the Senate who serve on the Commission and staff of the Com-

the purpose of carrying out its duties, the Commission may hold such hearings and undertake such other activities as the Commission determines to be necessary to carry out its duties. (2) STUDIES
FICE.—Upon BY GENERAL ACCOUNTING OF-

the request of the Commission, the

Comptroller General of the United States shall conduct such studies or investigations as the Commission determines to be necessary to carry out its duties. (3) COST
ESTIMATES BY CONGRESSIONAL

BUDGET OFFICE.—Upon

the request of the Commis-

sion, the Director of the Congressional Budget Office shall provide to the Commission such cost estimates as the Commission determines to be necessary to carry out its duties. (4) DETAIL
OF FEDERAL EMPLOYEES.—Upon

the request of the Commission, the head of any Federal agency is authorized to detail, without reimbursement, any of the personnel of such agency to the Commission to assist the Commission in car-

quest of the Commission, the head of a Federal agency shall provide such technical assistance to the Commission as the Commission determines to be necessary to carry out its duties. (6) USE
OF MAILS.—The

Commission may use

the United States mails in the same manner and under the same conditions as Federal agencies. (7) OBTAINING
INFORMATION.—The

Commis-

sion may secure directly from any Federal agency information necessary to enable it to carry out its duties, if the information may be disclosed under section 552 of title 5, United States Code. Upon request of the Chairman of the Commission, the head of such agency shall furnish such information to the Commission. (8) ADMINISTRATIVE
SUPPORT SERVICES.—

Upon the request of the Commission, the Administrator of General Services shall provide to the Commission on a reimbursable basis such administrative support services as the Commission may request. (f) COMMISSION CONSIDERATION.—

months after appointment of the members of the Commission (as described in subsection (c)(1)), the Commission shall vote on a comprehensive and detailed report based on the long-term care plan described in subsection (b)(1) that contains any recommendations or proposals for legislative or administrative action as the Commission deems appropriate, including proposed legislative language to carry out the recommendations or proposals (referred to in this section as the ‘‘Commission bill’’). (B) APPROVAL
BERS.—The BY MAJORITY OF MEM-

Commission bill shall require the

approval of a majority of the members of the Commission. (2) TRANSMISSION (A) IN
OF COMMISSION BILL.—

GENERAL.—If

the Commission bill

is approved by the Commission pursuant to paragraph (1), then not later than 10 days after such approval, the Commission shall submit the Commission bill to the President, the Vice President, the Speaker of the House of

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132 1 2 3 4 5 6 7 8 Representatives, and the majority and minority Leaders of each House on Congress. (B) COMMISSION
LIC.—Upon BILL TO BE MADE PUB-

the approval or disapproval of the

Commission bill pursuant to paragraph (1), the Commission shall promptly make such proposal, and a record of the vote, available to the public. (g) TERMINATION.—The Commission shall terminate

9 30 days after the vote described in subsection (f)(1). 10 11 (h) CONSIDERATION
TIONS.—If OF

COMMISSION RECOMMENDA-

approved by the majority required by sub-

12 section (f)(1), the Commission bill that has been sub13 mitted pursuant to subsection (f)(2)(A) shall be intro14 duced in the Senate (by request) on the next day on which 15 the Senate is in session by the majority leader of the Sen16 ate or by a Member of the Senate designated by the major17 ity leader of the Senate and shall be introduced in the 18 House of Representatives (by request) on the next legisla19 tive day by the majority leader of the House or by a mem20 ber of the House designated by the majority leader of the 21 House. 22 23 24
SEC. 644. CONSUMER OPERATED AND ORIENTED PLAN PROGRAM CONTINGENCY FUND.

(a) ESTABLISHMENT.—The Secretary of Health and

25 Human Services shall establish a fund to be used to pro-

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133 1 vide assistance and oversight to qualified nonprofit health 2 insurance issuers that have been awarded loans or grants 3 under section 1322 of the Patient Protection and Afford4 able Care Act (42 U.S.C. 18042) prior to the date of en5 actment of this Act. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (b) TRANSFER AND RESCISSION.— (1) TRANSFER.—From the unobligated balance of funds appropriated under section 1322(g) of the Patient Protection and Affordable Care Act (42 U.S.C. 18042(g)), 10 percent of such sums are hereby transferred to the fund established under subsection (a) to remain available until expended. (2) RESCISSION.—Except as provided for in paragraph (1), amounts appropriated under section 1322(g) of the Patient Protection and Affordable Care Act (42 U.S.C. 18042(g)) that are unobligated as of the date of enactment of this Act are rescinded.

24 this section and amendments made by this section and 25 notwithstanding any other provision of law, the authorities

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134 1 provided by each provision of the Food, Conservation, and 2 Energy Act of 2008 (Public Law 110–246; 122 Stat. 3 1651) and each amendment made by that Act (and for 4 mandatory programs at such funding levels), as in effect 5 on September 30, 2012, shall continue, and the Secretary 6 of Agriculture shall carry out the authorities, until the 7 later of— 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) September 30, 2013; or (2) the date specified in the provision of that Act or amendment made by that Act. (b) COMMODITY PROGRAMS.— (1) IN
GENERAL.—The

terms and conditions

applicable to a covered commodity or loan commodity (as those terms are defined in section 1001 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702)) or to peanuts, sugarcane, or sugar beets for the 2012 crop year pursuant to title I of that Act (7 U.S.C. 8702 et seq.) and each amendment made by that title shall be applicable to the 2013 crop year for that covered commodity, loan commodity, peanuts, sugarcane, or sugar beets. (2) MILK.— (A) IN
GENERAL.—Notwithstanding

sub-

section (a), the Secretary of Agriculture shall carry out the dairy product price support pro-

tion, and Energy Act of 2008 (7 U.S.C. 8773) is amended by striking ‘‘2012’’ each place it appears in subsections (c)(3), (d)(1), (d)(2), (e)(2)(A), (g), and (h)(1) and inserting ‘‘2013’’. (3) SUSPENSION
OF PERMANENT PRICE SUP-

PORT AUTHORITIES.—The

provisions of law specified

in subsections (a) through (c) of section 1602 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8782) shall be suspended— (A) for the 2013 crop or production year of a covered commodity (as that term is defined in section 1001 of that Act (7 U.S.C. 8702)), peanuts, sugarcane, and sugar, as appropriate; and (B) in the case of milk, through December 31, 2013. (c) CONSERVATION PROGRAMS.— (1) CONSERVATION
RESERVE.—Section

1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb–5) is amended by striking subsection (f) and inserting the following: ‘‘(f) FUNDING.— ‘‘(1) FISCAL
YEARS 2009 THROUGH 2012.—Of

the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to the maximum extent practicable, $50,000,000 for the period of fiscal years 2009 through 2012. ‘‘(2) AUTHORIZATION
OF APPROPRIATIONS.—

There is authorized to be appropriated to carry out this section $10,000,000 for fiscal year 2013.’’. (d) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—

(1) EMPLOYMENT

AND TRAINING PROGRAM.—

Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) is amended by inserting ‘‘, except that for fiscal year 2013, the amount shall be $79,000,000’’ before the period at the end.

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137 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and ‘‘(F) for fiscal year 2016 and each subsequent fiscal year, the applicable amount during the preceding fiscal year, as adjusted to reflect any increases for the 12-month period ending the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.’’. (e) RESEARCH PROGRAMS.— (1) ORGANIC
TENSION AGRICULTURE RESEARCH AND EX-

(2) NUTRITION

EDUCATION.—Section

28(d)(1)

of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended— (A) in subparagraph (A), by striking ‘‘and’’ after the semicolon at the end; and (B) by striking subparagraph (B) and inserting the following: ‘‘(B) for fiscal year 2012, $388,000,000; ‘‘(C) for fiscal year 2013, $285,000,000; ‘‘(D) for fiscal year 2014, $401,000,000; ‘‘(E) for fiscal year 2015, $407,000,000;

be appropriated to carry out this section $20,000,000 for fiscal year 2013. ‘‘(B) MULTIYEAR
CONTRACTS.—For

each

multiyear contract entered into by the Secretary during a fiscal year under this paragraph, the Secretary shall ensure that sufficient funds are obligated from the amounts appropriated for that fiscal year to fully cover all payments required by the contract for all years of the contract.’’. (11) FOREST
BIOMASS FOR ENERGY.—Section

to be appropriated to carry out this section $10,000,000 for fiscal year 2013.’’; (D) in paragraph (3) (as so redesignated), by striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (1) or (2)’’; and (E) in paragraph (5) (as so redesignated), by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. (2) NATIONAL
CLEAN PLANT NETWORK.—Sec-

tion 10202(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761(e)) is amended—

to be appropriated to carry out the Program $5,000,000 for fiscal year 2013.’’. (3) NATIONAL
ORGANIC CERTIFICATION COST-

SHARE PROGRAM.—Section

10606 of the Farm Se-

curity and Rural Investment Act of 2002 (7 U.S.C. 6523) is amended— (A) in subsection (a), by striking ‘‘Of funds of the Commodity Credit Corporation, the Secretary of Agriculture (acting through the Agricultural Marketing Service) shall use

$22,000,000 for fiscal year 2008, to remain available until expended, to’’ and inserting ‘‘The Secretary of Agriculture (acting through the Agricultural Marketing Service) shall’’; and (B) by adding at the end the following: ‘‘(d) FUNDING.— ‘‘(1) MANDATORY
FUNDING FOR FISCAL YEARS

(2) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; (3) by inserting after subparagraph (A) the following: ‘‘(B) FISCAL
YEAR 2013.—There

is author-

ized to be appropriated to carry out this section $20,000,000 for fiscal year 2013.’’; (4) in subparagraph (C) (as so redesignated), by striking ‘‘subparagraph (A)’’ and inserting ‘‘subparagraph (A) or (B)’’; and (5) in subparagraph (D) (as so redesignated), by striking ‘‘subparagraph (A)’’ and inserting ‘‘subparagraph (A) or (B)’’. (i) EXCEPTIONS.— (1) IN
GENERAL.—Subsection

(a) does not

apply with respect to mandatory funding provided by programs authorized by provisions of law amended by subsections (d) through (h). (2) CONSERVATION.—Subsection (a) does not apply with respect to the programs specified in para-

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147 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 graphs (3)(B), (4), (6), and (7) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)), relating to the conservation stewardship program, farmland protection program, environmental quality incentives program, and wildlife habitat incentives program, for which program authority was extended through fiscal year 2014 by section 716 of Public Law 112–55 (125 Stat. 582). (3) TRADE.—Subsection (a) does not apply with respect to the following provisions of law: (A) Section 3206 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1726c) relating to the use of Commodity Credit Corporation funds to support local and regional food aid procurement projects. (B) Section 3107(l)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)(1)) relating to the use of Commodity Credit Corporation funds to carry out the McGovern-Dole International Food for Education and Child Nutrition Program. (4) SURVEY
OF FOODS PURCHASED BY SCHOOL

FOOD AUTHORITIES.—Subsection

(a) does not apply

with respect to section 4307 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246;

does not apply with respect to the following provisions of law: (A) Section 379E(d)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008s(d)(1)), relating to funding of the rural microentrepreneur assistance program. (B) Section 6029 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1955) relating to funding of pending rural development loan and grant applications. (C) Section 231(b)(7)(A) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(b)(7)(A)), relating to funding of valueadded agricultural market development program grants. (D) Section 375(e)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j(e)(6)(B)) relating to the use of Commodity Credit Corporation funds for the National Sheep Industry Improvement Center.

apply with respect to section 14012 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 2209) relating to determination on the merits of Pigford claims. (9) HEARTLAND,
HABITAT, HARVEST, AND

HORTICULTURE ACT OF 2008.—Subsection

(a) does

not apply with respect to title XV of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 2246), and amendments made by that title, relating to the provision of supplemental agricultural disaster assistance under title IX of the Trade Act of 1974 (19 U.S.C. 2497 et seq.),

4 in this section, this section and the amendments made by 5 this section take effect on the earlier of— 6 7 8 9 10 (1) the date of the enactment of this Act; or (2) September 30, 2012.
SEC. 702. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

(a) IN GENERAL.—Section 531 of the Federal Crop

11 Insurance Act (7 U.S.C. 1531) is amended— 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) in subsection (a)(5)— (A) in the matter preceding clause (i), by striking the first ‘‘under’’; and (B) by redesignating clauses (i) through (iii) as subparagraphs (A), (B), and (C), respectively, and indenting appropriately; (2) in subsection (c)— (A) in paragraph (1), by striking ‘‘use such sums as are necessary from the Trust Fund to’’; and (B) by adding at the end the following: ‘‘(3) AUTHORIZATION
OF APPROPRIATIONS.—

There is authorized to be appropriated to carry out this subsection $400,000,000 for each of fiscal years 2012 and 2013.’’; (4) in subsection (e)— (A) in paragraph (1), by striking ‘‘use up to $50,000,000 per year from the Trust Fund to’’; and (B) by adding at the end the following: ‘‘(4) AUTHORIZATION
OF APPROPRIATIONS.—

There is authorized to be appropriated to carry out this subsection $50,000,000 for each of fiscal years 2012 and 2013.’’; (5) in subsection (f)— (A) in paragraph (2)(A), by striking ‘‘use such sums as are necessary from the Trust Fund to’’; and (B) by adding at the end the following:

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152 1 2 3 4 5 6 7 8 ‘‘(5) AUTHORIZATION
OF APPROPRIATIONS.—

There is authorized to be appropriated to carry out this subsection $20,000,000 for each of fiscal years 2012 and 2013.’’; and (6) in subsection (i), by inserting ‘‘or, in the case of subsections (c) through (f), September 30, 2013’’ after ‘‘2011,’’. (b) EFFECTIVE DATE.—The amendments made by

14 title 10, United States Code,, as added by section 1035 15 of the National Defense Authorization Act for Fiscal Year 16 2013, is amended— 17 18 19 20 21 (1) by striking ‘‘that’’ before ‘‘the Russian Federation’’ and inserting ‘‘whether’’; and (2) by inserting ‘‘strategic’’ before ‘‘arms control obligations’’. (b) EFFECTIVE DATE.—The amendments made by

22 subsection (a) shall take effect as if included in the enact23 ment of the National Defense Authorization Act for Fiscal 24 Year 2013.

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153 1 2 3
SEC. 902. NO COST OF LIVING ADJUSTMENT IN PAY OF MEMBERS OF CONGRESS.

Notwithstanding any other provision of law, no ad-

4 justment shall be made under section 601(a) of the Legis5 lative Reorganization Act of 1946 (2 U.S.C. 31) (relating 6 to cost of living adjustments for Members of Congress) 7 during fiscal year 2013. 8 9 10 11 12

13 Budget and Emergency Deficit Control Act of 1985 is 14 amended— 15 16 17 18 19 20 21 22 23 (1) in subparagraph (C), by striking ‘‘and’’ after the semicolon; (2) in subparagraph (D), by striking the period and inserting‘‘ ; and’’; and (3) by inserting at the end the following: ‘‘(E) for fiscal year 2013, reducing the amount calculated under subparagraphs (A) through (D) by $24,000,000,000.’’. (b) AFTER SESSION SEQUESTER.—Notwithstanding

24 any other provision of law, the fiscal year 2013 spending 25 reductions required by section 251(a)(1) of the Balanced

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154 1 Budget and Emergency Deficit Control Act of 1985 shall 2 be evaluated and implemented on March 27, 2013. 3 4 (c) POSTPONEMENT
QUESTER FOR OF

section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 are amended to read as follows: ‘‘(2) for fiscal year 2013— ‘‘(A) for the security category, as defined in section 250(c)(4)(B), $684,000,000,000 in budget authority; and ‘‘(B) for the nonsecurity category, as defined in section 250(c)(4)(A),

$359,000,000,000 in budget authority; ‘‘(3) for fiscal year 2014— ‘‘(A) for the security category,

4 President shall order a sequestration for fiscal year 2013 5 pursuant to section 251A of the Balanced Budget and 6 Emergency Deficit Control Act of 1985, as amended by 7 this section, pursuant to which, only for the purposes of 8 the calculation in sections 251A(5)(A), 251A(6)(A), and 9 251A(7)(A), section 251(c)(2) shall be applied as if it read 10 as follows: 11 12 13 14 15 16 17 18 19 ‘‘(2) For fiscal year 2013— ‘‘(A) for the security category,

$544,000,000,000 in budget authority; and ‘‘(B) for the nonsecurity category,

$499,000,000,000 in budget authority;’’.
SEC. 1002. AMOUNTS IN APPLICABLE RETIREMENT PLANS MAY BE TRANSFERRED TO DESIGNATED

ROTH ACCOUNTS WITHOUT DISTRIBUTION.

(a) IN GENERAL.—Section 402A(c)(4) is amended by

20 adding at the end the following: 21 22 23 24 ‘‘(E) SPECIAL
FERS.—In RULE FOR CERTAIN TRANS-

the case of an applicable retirement

plan which includes a qualified Roth contribution program—

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156 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ‘‘(i) the plan may allow an individual to elect to have the plan transfer any amount not otherwise distributable under the plan to a designated Roth account maintained for the benefit of the individual, ‘‘(ii) such transfer shall be treated as a distribution to which this paragraph applies which was contributed in a qualified rollover contribution (within the meaning of section 408A(e)) to such account, and ‘‘(iii) the plan shall not be treated as violating the provisions of section

401(k)(2)(B)(i),

403(b)(7)(A)(i),

403(b)(11), or 457(d)(1)(A), or of section 8433 of title 5, United States Code, solely by reason of such transfer.’’. (b) EFFECTIVE DATE.—The amendment made by

19 this section shall apply to transfers after December 31, 20 2012, in taxable years ending after such date. 21 22 23